A number of other announcements came from the results, such as the launch of their own holiday business
easyJet acts on carbon emissions with plans to become first carbon neutral airline
- Despite market turbulence, company posts headline profits before tax towards the top end of guidance but down 26% from 2018
- Operational performance guided by strong cost control which saw £139mn of cost savings over the year; an improvement of roughly 30% YOY
- Group commits to being first major airline to become net-zero carbon by offsetting emissions from flights across the whole business network
- Following Thomas Cook collapse, easyJet is to relaunch its package holiday business to fill gap in the market
- Recommendation: we have no formal comment on easyJet however shares are likely to appeal to investors with a positive outlook on the travel market and who are in pursuit of longer-term growth
Despite a difficult market backdrop, easyJet posted headline profits before tax towards the top end of guidance, but down 26% from 2018. Operational performance was guided by strong cost control which saw £139m of cost savings over the year; an improvement of roughly 30% YOY. One of the big announcements coming from the results involved the group’s commitment to become the first major airline to become net-zero carbon by offsetting emissions from flights across the whole business network. This is a step in the right direction for EasyJet, who will continue to pursue more sustainable longer-term developments moving forward.
All in all, these results reflect a difficult year however investors should look past these figures. EasyJet boast one of the strongest balance sheets compared to peers which has clearly been utilised with the group announcing the launch of their own holiday business before Christmas. With a gap left in the market by rival Thomas Cook following its collapse, this could open a new avenue for growth for EasyJet which is sure to please shareholders. In addition, with record customers flying this financial year, cost cutting making progress and improving revenue per seat throughout the second-half of the year aided by self-help initiatives the future does not look as dreary as once seemed. Should momentum persist alongside the successful integration of their new holiday business, there is reason for shareholders to be excited. Christmas may just have come early.
Currently, we have no formal comment on the company however this stock is likely to appeal to investors with a positive outlook on the travel market and who are in pursuit of longer-term growth.
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